Yellowknife (Dec 22/04) - A long-time Yellowknife businessman has $22.7 million to invest into a new 12-storey building, but the project may not happen because of proposed changes to the city's zoning bylaw.

The site proposed for the building is at the corner of 47th Street and 51st Avenue, currently zoned as mixed-residential.

The overall investment Grand Central Developments (GCD) expects to make into two downtown commercial developments is closer to $27 million, said owner/partner Pat Guinan. Primarily, two local families, the Guinan and Humphrey families, own GCD.

The two developments are situated close together. One three-storey building is currently under construction on 48th Street and 51st Avenue across from Boston Pizza. It will offer 13,550 square feet of office space. Occupancy is expected in June 2005.

The second building GCD is proposing to build is a 12-storey office complex offering up to 81,500 sq. ft. of space.

This building is at risk of not being developed as a result of the city's new zoning bylaw, said Guinan.

"The complex could be developed to include ground floor retail such as coffee shops and banking facilities," states a GCD portfolio, which lays out the developer's plans.

The company has identified space to provide parking for the complex, but the city may not let them build one.

A new zoning bylaw, which has just passed first reading, does not allow for the building of parking lots in the outer reaches of the south downtown area.

Guinan made a presentation on the parking lot issue to City Hall on Dec. 13 and supplied a previously written submission on Dec. 8, outlining his concerns for not being able to provide potential tenants with adequate parking space.

"It's like playing a poker game. Don't change the rules on me half-way through the game," said Guinan.

Mayor Gordon Van Tighem says GCD's concerns are premature.

"What has been proposed is in a transitional area that focuses more on residential," the mayor said. "He can speak to it again at second reading. Other developers make applications for exceptions and if it's felt to be acceptable, they get them."

City planner Dave Jones said there are two options Guinan can consider.

First, he can request a change to rezoning plans to allow for a parking lot in that area.

"The only other alternative is for him to acquire other lots, or an increased level of underground parking. It isn't correct to say we're prohibiting his development, but it does change the nature of it," said Jones. The issue should be back before City Council in mid-to-late January for further discussion.